BILL NUMBER: AB 1555	CHAPTERED  10/10/99

	CHAPTER   921
	FILED WITH SECRETARY OF STATE   OCTOBER 10, 1999
	APPROVED BY GOVERNOR   OCTOBER 9, 1999
	PASSED THE ASSEMBLY   SEPTEMBER 9, 1999
	PASSED THE SENATE   SEPTEMBER 8, 1999
	AMENDED IN SENATE   SEPTEMBER 3, 1999
	AMENDED IN SENATE   AUGUST 31, 1999
	AMENDED IN SENATE   JUNE 30, 1999
	AMENDED IN ASSEMBLY   MAY 6, 1999

INTRODUCED BY   Assembly Member Longville

                        FEBRUARY 26, 1999

   An act to amend Sections 56113, 56375, 57080, and 57087.3 of the
Government Code, relating to local government organization.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1555, Longville.  Local government.
   (1) Under the Cortese-Knox Local Government Reorganization Act of
1985, the local agency formation commission in a county may approve
the annexation of contiguous territory to a city without an election
under specified conditions.
   This bill would authorize the commission to approve without an
election the annexation or reorganization of an unincorporated island
or unincorporated islands within city limits under specified
conditions depending on whether the proceeding is initiated on or
after January 1, 2000, or January 1, 2007.
   (2) Existing law governing the allocation of property tax revenues
between local government entities requires the revision of those
allocations upon a jurisdictional change.  However, under specified
conditions, the merger of a subsidiary district into a city is not
subject to certain provisions of law concerning the revision of those
allocations.
   This bill would correct a cross-reference in this exception.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 56113 of the Government Code is amended to
read:
   56113.  (a) The authority to initiate, conduct, and complete any
proceeding pursuant to Section 56112 does not apply to any territory
which, after January 1, 2000, became surrounded or substantially
surrounded by the city to which annexation is proposed.  The
authority to initiate, conduct, and complete any proceeding pursuant
to Section 56112 shall expire January 1, 2007.  The period of time
between January 1, 2000, and January 1, 2007, shall not include any
period of time during which, in an action pending in any court, a
local agency is enjoined from conducting proceedings pursuant to
Section 56112.  Upon final disposition of that case, the previously
enjoined local agency may initiate, conduct, and complete proceedings
pursuant to Section 56112 for the same period of time as was
remaining under that seven-year limit at the time the injunction
commenced.  However, if the remaining time is less than six months,
that authority shall continue for six months following final
disposition of the action.
   (b) Between January 1, 2000, and January 1, 2007, no new proposal
involving the same or substantially the same territory as a proposal
initiated pursuant to Section 56112 after January 1, 2000, shall be
initiated for two years after the date of adoption by the commission
or by the conducting authority of a resolution terminating
proceedings.
  SEC. 2.  Section 56375 of the Government Code is amended to read:
   56375.  The commission shall have all of the following powers and
duties subject to any limitations upon its jurisdiction set forth in
this part:
   (a) To review and approve or disapprove with or without amendment,
wholly, partially, or conditionally, proposals for changes of
organization or reorganization.  Effective July 1, 1994, the
commission may initiate proposals for (1) consolidation of districts,
as defined in Section 56036, (2) dissolution, (3) merger, or (4)
establishment of a subsidiary district, or a reorganization that
includes any of these changes of organization.  A commission shall
have the authority to initiate only a (1) consolidation of districts,
(2) dissolution, (3) merger, (4) establishment of a subsidiary
district, or (5) a reorganization that includes any of these changes
of organization, if that change of organization or reorganization is
consistent with a recommendation or conclusion of a study prepared
pursuant to Section 56378 or 56425.  However, a commission shall not
have the power to disapprove an annexation to a city, initiated by
resolution, of contiguous territory that the commission finds is any
of the following:
   (1) Surrounded or substantially surrounded by the city to which
the annexation is proposed or by that city and a county boundary or
the Pacific Ocean if the territory to be annexed is substantially
developed or developing, is not prime agricultural land as defined in
Section 56064, is designated for urban growth by the general plan of
the annexing city, and is not within the sphere of influence of
another city.
   (2) Located within an urban service area that has been delineated
and adopted by a commission, which is not prime agricultural land, as
defined by Section 56064, and is designated for urban growth by the
general plan of the annexing city.
   (3) An annexation or reorganization of unincorporated islands
meeting the requirements of subdivision (d).
   As a condition to the annexation of an area that is surrounded, or
substantially surrounded, by the city to which the annexation is
proposed, the commission may require, where consistent with the
purposes of this division, that the annexation include the entire
island of surrounded, or substantially surrounded, territory.
   A commission shall not impose any conditions that would directly
regulate land use density or intensity, property development, or
subdivision requirements.  When the development purposes are not made
known to the annexing city, the annexation shall be reviewed on the
basis of the adopted plans and policies of the annexing city or
county.  This paragraph does not prohibit a commission from
requiring, as a condition to annexation, that a city prezone the
territory to be annexed.  However, the commission shall not specify
how, or in what manner, the territory shall be prezoned.
   (b) With regard to a proposal for annexation or detachment of
territory to, or from, a city or district or with regard to a
proposal for reorganization that includes annexation or detachment,
to determine whether territory proposed for annexation or detachment,
as described in its resolution approving the annexation, detachment,
or reorganization, is inhabited or uninhabited.
   (c) With regard to a proposal for consolidation of two or more
cities or districts, to determine which city or district shall be the
consolidated, successor city or district.
   (d) To approve the annexation to a city after notice and hearing,
and authorize the conducting authority to order annexation of the
territory without an election, or waive the conducting authority
proceedings if the annexation meets the requirements of this
subdivision and is proposed by resolution adopted by the affected
city, if the commission finds that the territory contained in an
annexation proposal meets all of the following requirements:
   (1) It does not exceed 75 acres in area, that area constitutes the
entire island, and that island does not constitute a part of an
unincorporated area that is more than 100 acres in area.
   (2) The territory constitutes an entire unincorporated island
located within the limits of a city, or constitutes a reorganization
containing a number of individual unincorporated islands.
   (3) It is surrounded in either of the following ways:
   (A) Surrounded, or substantially surrounded, by the city to which
annexation is proposed or by the city and a county boundary or the
Pacific Ocean.
   (B) Surrounded by the city to which annexation is proposed and
adjacent cities.
   (C) This subdivision shall not be construed to apply to any
unincorporated island within a city that is a gated community where
services are currently provided by a community services district.
   (D) Notwithstanding any other provision of law, at the option of
either the city or the county, a separate property tax transfer
agreement may be agreed to between a city and a county pursuant to
Section 99 of the Revenue and Taxation Code regarding an annexation
subject to this subdivision without affecting any existing master tax
sharing agreement between the city and county.
   (4) It is substantially developed or developing.  The finding
required by this subparagraph shall be based upon one or more
factors, including, but not limited to, any of the following factors:

   (A) The availability of public utility services.
   (B) The presence of public improvements.
   (C) The presence of physical improvements upon the parcel or
parcels within the area.
   (5) It is not prime agricultural land, as defined by Section
56064.
   (6) It will benefit from the annexation or is receiving benefits
from the annexing city.
   Notwithstanding any other provision of this subdivision, this
subdivision shall not apply to all or any part of that portion of the
redevelopment project area referenced in subdivision (e) of Section
33492.41 of the Health and Safety Code that as of January 1, 2000,
that meets all of the following requirements:  is unincorporated
territory; contains at least 100 acres; is surrounded or
substantially surrounded by incorporated territory; and contains at
least 100 acres zoned for commercial or industrial uses or is
designated on the applicable county general plan for commercial or
industrial uses.
   (e) To approve the annexation of unincorporated, noncontiguous
territory, subject to the limitations of Section 56111, located in
the same county as that in which the city is located, and that is
owned by a city and used for municipal purposes and to authorize the
conducting authority to annex the territory without notice and
hearing.
   (f) Subject to Section 56029, to designate in the resolution
making determinations the conducting authority for proceedings.
   (g) When a change of organization or a reorganization includes the
annexation of inhabited territory to a city and the assessed value
of land within the territory equals one-half or more of the assessed
value of land within the city, or the number of registered voters
residing within the territory equals one-half or more of the number
of registered voters residing within the city, to determine as a
condition of the proposal that the change of organization or
reorganization shall also be subject to confirmation by the voters in
an election to be called, held, and conducted within the territory
of the city to which annexation is proposed.
   (h) With respect to the incorporation of a new city or the
formation of a new special district, to determine the number of
registered voters residing within the proposed city or special
district.  The number of registered voters shall be calculated as of
the time of the last report of voter registration by the county clerk
to the Secretary of State prior to the date the first signature was
affixed to the petition.  The executive officer shall notify the
petitioners of the number of registered voters resulting from this
calculation.
   (i) To adopt written procedures for the evaluation of proposals.
The commission may adopt standards for any of the factors enumerated
in Section 56841.  Any standards adopted by the commission shall be
written.
   (j) To adopt standards and procedures for the evaluation of
service plans submitted pursuant to Section 56653 and the initiation
of a change of organization or reorganization pursuant to subdivision
(a).
   (k) To make and enforce regulations for the orderly and fair
conduct of hearings by the commission.
   (l) To incur usual and necessary expenses for the accomplishment
of its functions.
   (m) To appoint and assign staff personnel and to employ or
contract for professional or consulting services to carry out and
effect the functions of the commission.
   (n) To review the boundaries of the territory involved in any
proposal with respect to the definiteness and certainty of those
boundaries, the nonconformance of proposed boundaries with lines of
assessment or ownership, and other similar matters affecting the
proposed boundaries.
   (o) To waive the restrictions of Section 56109 if it finds that
the application of the restrictions would be detrimental to the
orderly development of the community and that the area that would be
enclosed by the annexation or incorporation is so located that it
cannot reasonably be annexed to another city or incorporated as a new
city.
   (p) To waive the application of Section 25210.90 or Section 22613
of the Streets and Highways Code if it finds the application would
deprive an area of a service needed to ensure the health, safety, or
welfare of the residents of the area and if it finds that the waiver
would not affect the ability of a city to provide any service.
However, within 60 days of the inclusion of the territory within the
city, the legislative body may adopt a resolution nullifying the
waiver.
   (q) If the proposal includes the incorporation of a city, as
defined in Section 56043, or the formation of a district, as defined
in Section 2215 of the Revenue and Taxation Code, the commission
shall determine the property tax revenue to be exchanged by the
affected local agencies pursuant to Section 56842.
   (r) To authorize a city or district to provide new or extended
services outside its jurisdictional boundaries pursuant to Section
56133.
  SEC. 3.  Section 57080 of the Government Code is amended to read:
   57080.  (a) With respect to a proceeding initiated on or after
January 1, 2000, when approved and authorized by the commission
pursuant to subdivision (d) of Section 56375, the conducting
authority shall, not later than 35 days after conclusion of the
hearing, adopt a resolution ordering the annexation without an
election or shall, by resolution, terminate the proceedings.
Sections 57050, 57051, 57052, subdivision (a) of 57075, and Section
57078 do not apply to any annexation subject to this subdivision.
   (b) With respect to a proceeding initiated on or after January 1,
2007, when approved and authorized by the commission pursuant to
subdivision (d) of Section 56375, Sections 57050, 57051, and 57052,
shall apply and subdivision (a) of Section 57075 does not apply.
   (1) If the territory proposed to be annexed is inhabited
territory, the conducting authority, not more than 30 days after
conclusion of the hearing, shall adopt a resolution making a finding
regarding the value of written protests filed and not withdrawn and
shall do either of the following:
   (A) Terminate proceedings if written protests have been filed and
not withdrawn by 50 percent or more of the registered voters within
the affected territory.
   (B) Order the territory annexed without an election.
   (2) If the territory proposed to be annexed is uninhabited, the
conducting authority, not more than 30 days after conclusion of the
hearing, shall adopt a resolution which does either of the following:

   (A) Terminates proceedings.
   (B) Orders the territory annexed.
  SEC. 4.  Section 57087.3 of the Government Code is amended to read:

   57087.3.  The merger of a subsidiary district with a city, of
which the city council is also the governing board of that subsidiary
district, shall not be subject to Sections 99 and 99.01 of the
Revenue and Taxation Code if the city council adopts a resolution
that states that the city shall do all of the following:
   (a) Continue providing the services of the subsidiary district at
the same level to those areas outside the city's boundaries, but
within the territory of the subsidiary district, as the services
provided for territory within the city limits.
   (b) Assume all assets of the subsidiary district.
   (c) Assume all liabilities of the subsidiary district.
   (d) Assume all ad valorem taxes, other accounts receivable, and
other revenues of the subsidiary district.
